Wind energy attracts more than $128 billion in investments in the USFebruary 29, 2016
The wind sector has become a very powerful force for the US economy
Wind energy projects have had a beneficial impact on the United States economy, according to a report from the American Wind Energy Association (AWEA). The report shows that new wind farms have added an estimated $13 billion to the U.S. economy every year over the past five years. Over the past decade, some $128 billion has been added to the economy thanks to wind farms that have taken form throughout the country. AWEA notes that wind power has grown exponentially over the past several years, becoming a powerful economic force for the United States.
Wind farms produce enough electrical energy to power 19 million homes
According to AWEA, there is enough wind power capacity in the U.S. to power approximately 19 million average homes. The organization believes that further investments into the wind sector will have a beneficial impact on state economies and allow homeowners to save money on their energy bills. Businesses are also expected to spend less on electrical power as the wind sector continues to grow. Investors have been relatively cautious of the wind sector over the past few years due to government policies being allowed to expire.
Investors are confident in the wind sector when the Production Tax Credit is not allowed to expire
Investments in the wind sector have gone through a “boom-bust” cycle. This is largely due to the Production Tax Credit being allowed to expire numerous times. The tax credit has provided financial support for wind projects for many years, but the tax credit has expired many times over its lifetime. When the Production Tax Credit is available, investors are relatively eager to pump money into wind projects. Without the tax credit, however, investors are not comfortable with investing in the wind sector because of the risks they face in terms of potential financial losses.
Investments in wind energy are growing rapidly
Wind power saw an increase in support in 2015. Approximately $14.7 billion was invested in new wind projects last year, which is roughly the gross domestic product of Iceland. This is 73% higher than the investments made into the wind sector in 2014 and a seven-fold increase over the funding that was funneled into the wind sector in 2013.